The AUD/JPY cross is facing resistance near 97.90 in the Asian session, continuing its downward trend for the third consecutive day. Despite positive Australian PMI data, the Aussie fails to gain momentum. Investors are now waiting for Bank of Japan’s (BoJ) Governor Kazuo Ueda’s speech on Friday for potential market shifts.
Recent data from Judo Bank and S&P Global revealed promising numbers for Australia’s economy, with the Manufacturing PMI climbing to 48.7 in August, Services PMI rising to 52.2, and Composite PMI reaching 51.4. However, the Australian Dollar’s downward pressure may be limited due to the Reserve Bank of Australia’s (RBA) hawkish stance on interest rates.
Conversely, the Japanese Yen is gaining strength against the AUD on expectations of a rate hike by the Bank of Japan (BoJ) by the year end. Economists predict a 25 basis points increase, with a median forecast of 0.50% for the end-of-year rate. BOJ Governor Kazuo Ueda’s upcoming speech is crucial in determining the future direction of the Yen.
Overall, the AUD/JPY pair’s movements are influenced by various factors including interest rates, economic data, and central bank policies. Understanding these dynamics can help investors make informed decisions and navigate the volatile forex market with confidence.
Analysis:
The AUD/JPY currency pair is currently facing resistance near 97.90, with the Aussie struggling to gain traction despite positive PMI data from Australia. The BoJ’s expected rate hike and RBA’s hawkish stance on interest rates are key factors driving the pair’s movements. Investors should closely monitor upcoming central bank speeches and economic data releases to stay ahead of market trends and make well-informed investment decisions.